A 'friend' has come into a reasonable sum of money (tens of fousands) which he is going to be custodian of for approx. 12 months, after which it will need to be returned (or will attract interest). He has looked into an interest paying account which offers approx 1.1% AER which is fantastic compared to normal bank accounts, however, still seems somewhat paltry. Other that running drugs what would be a sensible investment to make to increase the said sum over an approximate 12 month period?
Precious metal. Have a look at bullionvault.com. it a online gold, silver and platinum trading platform. It's still gambling but gains can be quite big. Have a look the silver over the last few weeks and the gains it made for example.
Premium bonds is 100% safe. You can't loose , there is a slim chance of a big win and very likely at least 2 or 3% winnings.
Ah yes another bounce back loan The funds came into the ltd co so will need to stay in the ltd co which limits your access to tax free options like ns and i investments Buy a bunch of high yield fixed income bonds maturing within 12 months and hope for the best?
There are of course conditions attached to what bbl funds can be used for but your friend knows that already as im sure his accountant does too!
There may be an option for my friend to take a directors loan and repay before April, however, that may be sailing rather close to the wind.....
£50k isn’t really a large enough amount do anything significant with over 12 months really.... Keep it in the account and hope he doesn’t need it.....
It seems that way, seems like a lot of grief to get a few hundred quid in interest - would have been nice to have still had an offset mortgage....
Its all relative, to some people that is a huge amount. Regardless of that it would be very satisfying to use it for 12 months and then hand it back knowing you have made a bit.
Exactly, rarely does the market offer quick cash solutions and if it does, only inside information will dictate who makes what. Long term game is the biggest winner generally with percentages and trades. Using borrowed money, whilst cheap and totally unsecured is rare, it’s still has Terms and Conditions. I’ve witnessed people do some ridiculous things with it and I can’t help but die inside a little....
Indeed, it would be an awful lot to lose on the stock market as even at FTSE ISA can lose money between now and April (when my friend would need to return it to the company - what's the old stock market saying 'sell in May and go away') trying to think of 'legitimate' short term investments seem to be few and far between but I may need to recalibrate my savings goals from those of the early nineties
Cars. Specifically Porsche 911. Even more specifically, mine. Numerous owners, including the last very careless one and it can be your mate’s for just 10,000 of those tens of thousands of his pounds. Other than that, obviously reward is usually commensurate with risk and what investments suit him will depend a lot on what sort of personality he has. One my exes has an amazing knack of turning tens into hundreds of thousands in short periods of time through property/hospitality sector investment. She’s very ballsy to the point of recklessness, she takes on a lot of risk and as her instincts are good she gets good returns, but she almost always over reaches, puts all her eggs in one basket, then when problems arise she gets into cash flow problems and gets swamped. This time last year she was driving a new Bentley but she’s currently on Universal Credit due to Covid putting her under. However I was talking to her earlier today and she was telling me she’s just started another online business in a different sector which already has tens of thousands of pounds in orders so it appears she’s very much back in the saddle and hopefully she won’t repeat the cycle I’ve seen her go through at least 3 times in 5 years. On the other hand if he’s risk averse then clearly he’s more in savings account/ISA territory where the returns are going to be measured in very low percentages. Does he have a financial advisor?
That financial geezer on't telly said last week of a Gov Bond guaranteed interest which was more than any current savings account. Can't remember exactly what it was called but I think the rate was 2% Someone will know
His financial advisor is extremely risk averse, baulking at the suggestion of cashing a final salary pension at 40% increase I think drugs is the best short term investment - but I'm not sure I really want to go there
Unless you’re a kingpin, drug dealing is a mug’s game and “tens of thousands“ won’t buy him into the business much above street level, where it’s all shooters, undercover test purchase stings and having a red hot Tefal iron pressed against your balls if you step on the wrong set of toes
